The Bahamas needs to spend about US$30 million to close the digital connectivity gap relative to the digital penetration in countries that are members of the Organization for Economic Cooperation and Development (OECD). 

The OECD is made up of the world’s most developed countries. A new report coming out of the Inter-American Development Bank (IDB), has revealed the extent of the digital divide between The Bahamas and OEDC countries.

The report catalogued the kind of investment needed in mobile and fixed infrastructure that could create almost 10,000 new jobs. Specifically, the report suggested that The Bahamas has to invest more than US$13.6 million in the mobile space and more than US$17 million in the fixed space in order to close the connectivity gap with OECD countries.

According to the IDB report, this investment in mobile and fixed infrastructure could create almost 10,000 new jobs. The report found that the Latin America and Caribbean region has “major broadband penetration and 4G technology coverage gaps compared with OECD countries” and that the average citizens in those countries “spend more than 20% of their income to access broadband services.”

This is a level far above the International Telecommunication Union’s recommended three per cent mark. The Bahamas was listed as one of the “best-placed” regional countries with Barbados in the lead, followed by Chile, Costa Rica, Brazil, Argentina, Uruguay and The Bahamas.

Closing the digital gap in the region

“To close the digital gap, countries in the region would need $68.5 billion,” the IDB report also revealed.

According to the IDB report, “of that total, 59 percent should go to improving connectivity in urban areas, something which is mostly handled by the private sector. In contrast, 41 percent should go to rural areas, where public investment is typically the main source of funding.”

According to the study, more public-private partnerships are needed to close the gap with OECD countries. The report highlighted that, “delays in improving connectivity and digitalisation in Latin American and Caribbean countries have dramatically exacerbated the economic and social impact of COVID-19.”

IDB President, Mauricio Claver-Carone in a statement about the report, noted that the multi -lateral funding organization is working to connect countries in the region with the funds that will help to make these upgrades possible. He added that expansion in fixed and mobile connectivity will reduce inequality and create jobs and sustainable economic growth.

“The IDB is taking steps to drive a digital ecosystem that will help the region attain these investments, design national broadband plans and create the public-private partnerships needed to expand coverage for all citizens, especially those who are most vulnerable,” Claver-Carone said.

• Related article: Closing the digital gap could create over 15 million regional jobs—IDB report